Tax reforms: A blueprint for national growth, not regional rivalry – Rep Benson

Member representing Ikorodu Federal Constituency of Lagos State in the House of Representatives, Babajimi Benson, has dismissed claims that President Bola Ahmed Tinubu’s tax reforms are designed to stoke regional divisions between Nigeria’s North and South. Instead, the lawmaker argues that the reforms represent a progressive step towards equitable economic growth and the modernisation of […]

Member representing Ikorodu Federal Constituency of Lagos State in the House of Representatives, Babajimi Benson, has dismissed claims that President Bola Ahmed Tinubu’s tax reforms are designed to stoke regional divisions between Nigeria’s North and South.

Instead, the lawmaker argues that the reforms represent a progressive step towards equitable economic growth and the modernisation of Nigeria’s outdated tax laws.

Benson, in an interview with Weekend Trust, highlighted the flaws of Nigeria’s existing tax legislation, dating back to the 1930s, which he described as riddled with inefficiencies and inequities.

He said the proposed reforms have a lot of transformational benefits for the entire country and not for a particular part of the country as being propagated.

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Benson elaborated on several benefits of the new tax policy, including the removal of Pay-As-You-Earn (PAYE) taxation for civil servants earning minimum wage.

Additionally, he said the reforms address a long-standing issue in Nigeria’s tax system—the centralisation of Value Added Tax (VAT) revenue at company head offices, with locations such as Lagos, Rivers, and the Federal Capital Territory (FCT) being the major beneficiaries.

He said the new law ensures that VAT revenues are distributed based on consumption and production in individual states, fostering a fairer revenue-sharing framework.

According to Benson, the reforms incentivize state governments to create business-friendly environments, as thriving local economies will translate into higher tax revenues.

He also pointed out that the reforms align Nigeria’s tax laws with global practices, particularly by eliminating double taxation on foreign companies outsourcing jobs to Nigerians—a move that could attract significant foreign investment.

He added that to ensure no state is left behind, the proposed reforms also introduce a stabilisation fund worth approximately ₦300 billion, which will support states struggling to meet revenue expectations.

Benson urged Nigerians to support the reforms and avoid politicising the policy.